CDP Page 1 of 86 Associated British Foods - Climate Change 2019 C0. Introduction C0.1 (C0.1) Give a general description and introduction to your organization. Associated British Foods is a diversified international food, ingredients and retail group with sales of £15.6bn, 137,000 employees and operations in 50 countries across Europe, southern Africa, the Americas, Asia and Australia. Our purpose is to provide safe, nutritious, affordable food and clothing that is great value for money. The group operates through five strategic business segments: Grocery, Sugar, Agriculture, Ingredients and Retail. We aim to achieve strong, sustainable leadership positions in markets that offer potential for profitable growth and deliver quality products and services that are central to people’s lives. Each business in the group enjoys a high degree of autonomy in the running of their operations, but at the heart of the way we operate is a principle of ‘value together’ – the benefit the group gains from each business being part of the larger organisation. Grocery comprises consumer-facing businesses that manufacture and market a variety of well-known food brands both nationally and internationally. Some of its best-known household brands include Twinings, Ovaltine, Ryvita, Kingsmill, Silver Spoon, Tip Top, Mazola and Spice Islands. George Weston Foods in Australia enjoys a 75% penetration of Australian households. AB Sugar - The heart of our business is making and selling sugar, but we do much more than that. As well as ‘core products’, made from sugar beet and sugar cane, we also make ‘co-products’, which can include anything one or two ‘steps’ away from the sugar- making process: animal feed, soil conditioners, electricity, bioethanol and seed enhancements. Our operations are in the UK, Spain, southern Africa and north China. In the EU, Azucarera is the major producer in Iberia and British Sugar is the sole processor of the UK sugar beet crop and is one of Europe’s most efficient processors. Illovo Sugar is the biggest sugar processor in Africa and is one of the world’s foremost low-cost producers. We also have a beet sugar business in north China. The group currently operates in ten countries and has 24 factories with the capacity to produce some 4.5 million tonnes of sugar. We also have the capacity to generate power sufficient to meet most of our internal needs and, in a number of locations, we export power to the national grid. AB Agri operates at the heart of the agricultural industry. Our unique breadth and experience enable us to add value all along the food, drink and biofuel industry supply chains. AB Agri supplies products and services to farmers, feed and food manufacturers, processors and retailers. We also buy grain from farmers and supply crop inputs through our joint venture arable operation, Frontier Agriculture. Ingredients comprises a number of businesses that supply a range of ingredients to food and non-food manufacturers. AB Mauri has a global presence in bakers’ yeast with significant market positions in The Americas, Europe and Asia, and is a technology leader in, and supplier of, bread improvers, dough conditioners and bakery mixes. ABF Ingredients comprises businesses focusing on high- value ingredients for food, feed, pharmaceutical and industrial applications. Primark is one of the largest clothing retailers in Europe. Primark employs more than 75,000 people across eleven countries across Europe and the US. Primark offers customers value for money clothing in more than 360 stores and 14.8 million square feet of retail selling space. We have always had a decentralised approach to doing business. Operational decisions are made locally because, in our experience, they are most successful when made by the people who have the best understanding of their markets and who have to implement them. This culture of setting strategy and priorities locally gives our businesses an advantage in being able to swiftly respond to local market, environmental and people issues. The corporate centre aims to provide a framework in which our business leaders have the freedom and decision-making authority to pursue opportunities. The centre is small and uses short lines of communication to ensure prompt, incisive and unambiguous decision-making. It seeks to ensure that business activities are appropriately monitored and supported. We believe we have a duty of care in the way we do business, including; how we employ people and develop careers, ethical and environmental standards in our many supply chains, health and safety, appropriate funding of pensions and to conserve, and where possible, enhance the environments in which we operate.
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CDP Page 1 of 86
Associated British Foods - Climate Change 2019
C0. Introduction
C0.1
(C0.1) Give a general description and introduction to your organization.
Associated British Foods is a diversified international food, ingredients and retail group with sales of £15.6bn, 137,000
employees and operations in 50 countries across Europe, southern Africa, the Americas, Asia and Australia. Our purpose is
to provide safe, nutritious, affordable food and clothing that is great value for money. The group operates through five
strategic business segments: Grocery, Sugar, Agriculture, Ingredients and Retail. We aim to achieve strong, sustainable
leadership positions in markets that offer potential for profitable growth and deliver quality products and services that are
central to people’s lives.
Each business in the group enjoys a high degree of autonomy in the running of their operations, but at the heart of the way
we operate is a principle of ‘value together’ – the benefit the group gains from each business being part of the larger
organisation.
Grocery comprises consumer-facing businesses that manufacture and market a variety of well-known food brands both
nationally and internationally. Some of its best-known household brands include Twinings, Ovaltine, Ryvita, Kingsmill, Silver
Spoon, Tip Top, Mazola and Spice Islands. George Weston Foods in Australia enjoys a 75% penetration of Australian
households.
AB Sugar - The heart of our business is making and selling sugar, but we do much more than that. As well as ‘core
products’, made from sugar beet and sugar cane, we also make ‘co-products’, which can include anything one or two ‘steps’
away from the sugar- making process: animal feed, soil conditioners, electricity, bioethanol and seed enhancements. Our
operations are in the UK, Spain, southern Africa and north China. In the EU, Azucarera is the major producer in Iberia and
British Sugar is the sole processor of the UK sugar beet crop and is one of Europe’s most efficient processors. Illovo Sugar is
the biggest sugar processor in Africa and is one of the world’s foremost low-cost producers. We also have a beet sugar
business in north China. The group currently operates in ten countries and has 24 factories with the capacity to produce
some 4.5 million tonnes of sugar. We also have the capacity to generate power sufficient to meet most of our internal needs
and, in a number of locations, we export power to the national grid.
AB Agri operates at the heart of the agricultural industry. Our unique breadth and experience enable us to add value all
along the food, drink and biofuel industry supply chains. AB Agri supplies products and services to farmers, feed and food
manufacturers, processors and retailers. We also buy grain from farmers and supply crop inputs through our joint venture
arable operation, Frontier Agriculture.
Ingredients comprises a number of businesses that supply a range of ingredients to food and non-food manufacturers. AB
Mauri has a global presence in bakers’ yeast with significant market positions in The Americas, Europe and Asia, and is a
technology leader in, and supplier of, bread improvers, dough conditioners and bakery mixes. ABF Ingredients comprises
businesses focusing on high- value ingredients for food, feed, pharmaceutical and industrial applications.
Primark is one of the largest clothing retailers in Europe. Primark employs more than 75,000 people across eleven countries
across Europe and the US. Primark offers customers value for money clothing in more than 360 stores and 14.8 million square
feet of retail selling space.
We have always had a decentralised approach to doing business. Operational decisions are made locally because, in our
experience, they are most successful when made by the people who have the best understanding of their markets and who
have to implement them. This culture of setting strategy and priorities locally gives our businesses an advantage in being
able to swiftly respond to local market, environmental and people issues. The corporate centre aims to provide a framework
in which our business leaders have the freedom and decision-making authority to pursue opportunities. The centre is small
and uses short lines of communication to ensure prompt, incisive and unambiguous decision-making. It seeks to ensure that
business activities are appropriately monitored and supported.
We believe we have a duty of care in the way we do business, including; how we employ people and develop careers, ethical
and environmental standards in our many supply chains, health and safety, appropriate funding of pensions and to conserve,
and where possible, enhance the environments in which we operate.
CDP Page 2 of 86
C0.2
(C0.2) State the start and end date of the year for which you are reporting data.
Start date
End date
Indicate if you
are providing
emissions data
for past
reporting years
Select the number of past reporting years you will
be providing emissions data for
August 1
2017
July 31
2018
No <Not Applicable>
C0.3
(C0.3) Select the countries/regions for which you will be supplying data.
Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Czechia Denmark Ecuador Finland France
Germany India Ireland Italy Malawi Malaysia Mexico Mozambique Netherlands New Zealand Pakistan Peru Philippines
Poland Portugal Singapore South Africa Spain Sri Lanka Swaziland Switzerland Thailand Turkey United Arab Emirates
United Kingdom of Great Britain and Northern Ireland United Republic of Tanzania United States of America Uruguay
Venezuela (Bolivarian Republic of) Viet Nam Zambia
C0.4
(C0.4) Select the currency used for all financial information disclosed throughout your response.
GBP
C0.5
(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are
being reported. Note that this option should align with your consolidation approach to your Scope 1 and Scope 2
greenhouse gas inventory.
Other, please specify (Operational entities where we have 40% + ownership)
C-AC0.6/C-FB0.6/C-PF0.6
(C-AC0.6/C-FB0.6/C-PF0.6) Are emissions from agricultural/forestry, processing/manufacturing, distribution
activities or emissions from the consumption of your products – whether in your direct operations or in other parts
of your value chain – relevant to your current CDP climate change disclosure?
Relevance
Agriculture/Forestry Own land only [Agriculture/Forestry only]
Processing/Manufacturing Direct operations only [Processing/manufacturing/Distribution only]
Distribution Direct operations only [Processing/manufacturing/Distribution only]
Consumption No
C-AC0.6g/C-FB0.6g/C-PF0.6g
(C-AC0.6g/C-FB0.6g/C-PF0.6g) Why are emissions from the consumption of your products not relevant to your
current CDP climate change disclosure?
Row 1
Primary reason
Other, please specify (We have looked at this as a whole and judged it not to be a current priority due to the complexity of
our operational structure and range of products. Nonetheless, individual businesses have calculated emissions from
consumption such as GWF's LCA.)
Please explain
A proportion of our products, for example bread, tea, ethnic foods, animal feed, clothes, soft furnishings and bioethanol are
consumed directly without any further processing. As we do not directly control our operating companies, we are currently
CDP Page 3 of 86
unable to obtain the granular data needed to assess this category across all product portfolios. We have looked at this as a
whole and judged it not to be a current priority due to the complexity of our operational structure. At a divisional level, our UK
Grocery Group are signatories to Courtauld Commitment 2025 to work along the entire food chain to reduce the
environmental impact of food and drink; to make food and drink production and consumption more sustainable. George
Weston Foods has also conducted Lifecycle Analysis of their products with certain customers and other businesses are
considering whether to calculate emissions from consumption of their products to collaborate with customers or respond to
increasing interest from other stakeholders.
C-AC0.7/C-FB0.7/C-PF0.7
(C-AC0.7/C-FB0.7/C-PF0.7) Which agricultural commodity(ies) that your organization produces and/or sources are
the most significant to your business by revenue? Select up to five.
Agricultural commodity
Sugar
% of revenue dependent on this agricultural commodity
10-20%
Produced or sourced
Both
Please explain
Our sugar businesses represent approximately 10% of the group's revenue in the reporting year. Sugar represents the single
largest emission contributor to the group. GHG emissions (Scopes 1, 2 and 3) from our sugar businesses contributed 56% to
ABF's group emissions and 82% of the group’s overall energy usage.
Agricultural commodity
Cotton
% of revenue dependent on this agricultural commodity
40-60%
Produced or sourced
Sourced
Please explain
Cotton is sourced by our retail business Primark for use in clothing and other goods such as soft furnishings. Primark's
revenue represents approximately 50% of the group's revenue in the reporting year.
Agricultural commodity
Wheat
% of revenue dependent on this agricultural commodity
Less than 10%
Produced or sourced
Sourced
Please explain
Wheat is sourced primarily by our bakeries and other grocery businesses in the UK.
Agricultural commodity
Soy
% of revenue dependent on this agricultural commodity
Less than 10%
Produced or sourced
CDP Page 4 of 86
Sourced
Please explain
Soy is an ingredient used primarily by AB Agri as a key component in animal feed. AB Agri has been instrumental in the
publication of the Soy Sourcing Guidelines by European Feed Compounders Association (FEFAC) as an important first step
in encouraging the use of responsibly produced soy in mainstream European supply chains. AB Agri's ambition is to source
100% of soy from certified responsible sources by 2024. Other business segments sourcing soy include our Ingredients and
Grocery divisions. For example, within Ingredients, PGP International has responded to an increased market interest in
consuming plant-based protein by introducing a soy ingredient that can be used to bake high-protein snacks, cookies and
energy bars. AB Mauri UK has maintained its ‘BM Trada Responsibly Sourced’ accreditation which means there is a direct
link between the soy or soy cognate they source and place of origin, which should be an internationally certified farm
dedicated to soy production.
Agricultural commodity
Other, please specify (Tea)
% of revenue dependent on this agricultural commodity
Less than 10%
Produced or sourced
Sourced
Please explain
Our tea business is Twinings which sells premium teas and malted beverages in more than 100 countries. Tea is sourced
from 160 tea gardens; a mix of large plantations and smallholder farms and Twinings has full traceability for the tea they
source. For more information about Twinings’ approach to sourcing tea, see their Social Impact report at
www.sourcedwithcare.com.
C1. Governance
C1.1
(C1.1) Is there board-level oversight of climate-related issues within your organization?
Yes
C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for
climate- related issues.
Position
of
individual
(s)
Please explain
Chief
Financial
Officer
(CFO)
The Chief Financial Officer (equivalent title to Chief Risk Officer and termed Group Finance Director within ABF) is
accountable at board level for matters relating to risk and opportunity management, of which climate change is
included. The Chief Financial Officer is a member of the Executive Board. Responsibility for risk management lies
with the Chief Financial Officer, reporting to the Audit Committee, and therefore has the ability to review, influence
and monitor changes at a group level.
Other C-
Suite
Officer
The Group Company Secretary is accountable at board level for matters relating to corporate responsibility including
climate change management. The Company Secretary position reports into the Chief Executive Officer and is a board
member, and therefore has the ability to review, influence and monitor changes at a group level. Any environmental
risks that have a high and immediate likelihood are reported to the Group CEO via the Group HR Director and the
Group Company Secretary.
Chief
Executive
Officer
(CEO)
The Group CEO receives and reviews a summary of risks, including environmental and climate risk, from each
division at least annually. In addition, environmental risks that have a high and immediate likelihood are reported to
the Group CEO via the Group HR Director, and the Group Company Secretary. Otherwise, environmental and
climate risks are incorporated into the group’s standard risk processes.
Board-
level
committee
The board as a whole is responsible for overall risk management for ABF. As climate change is integrated into
groupwide risk assessments, the board has ultimate responsibility for all risk related to climate change.
CDP Page 5 of 86
C1.1b
(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequency
with which
climate-
related issues
are a
scheduled
agenda item
Governance
mechanisms
into which
climate-
related
issues are
integrated
Please explain
Scheduled
– some
meetings
Reviewing
and guiding
risk
management
policies
Reviewing
and guiding
business
plans
Monitoring
implementation
and
performance
of objectives
Other, please
specify
(Reviewing
and guiding
corporate
responsibility
strategy)
Our decentralised business model empowers the management of our
businesses to identify, evaluate and manage the risks they face, on a timely
basis, to ensure compliance with relevant legislation, our business principles
and group policies. The risk assessments consider materiality, risk controls
and the likely impact against a range of criteria such as business objectives,
health and safety, financial performance, the environment, climate change,
local communities, regulation and reputation. The collated risks from each
business are shared with the respective divisional chief executives who present
their divisional risks to the group executive. The group’s Director of Financial
Control (equivalent title to Chief Risk Officer and Chief Financial Officer)
receives the risk assessments twice a year and, with the Group Finance
Director, reviews and challenges them with the divisional chief executives.
These risks and their impact on business performance are considered as part
of the divisional performance updates to the board conducted at each meeting.
In parallel, a summary of divisional risks is shared and discussed between the
Group Finance Director and Chief Executive at least annually and shared with
the board twice a year as part of the formal risk assessment process.
C1.2
(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.
Name of the
position(s) and/or
committee(s)
Responsibility Frequency of reporting to the board on
climate-related issues
Chief Sustainability Officer (CSO)
Both assessing and managing climate-
related risks and opportunities
Half-yearly
C1.2a
(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their
associated responsibilities are, and how climate-related issues are monitored (do not include the names of
individuals).
1) Where in the organisational structure the position lies & why responsibility lies here
The Chief Sustainability Officer (CSO) is the position with highest level management responsibility for climate-related issues.
The CSO reports to the Company Secretary who in turn reports to the Chief Executive. Responsibility lies here because the
CSO has this direct link to the board by reporting into the Company Secretary. The board is accountable for ensuring that
risk is successfully managed; climate-related issues are integrated into the group's risk assessment process.
The CSO is part of the legal compliance team but has a broad remit to cover all aspects of environment, social and
governance (ESG) issues including internal communication and external reporting of ABF's sustainability performance. A
part of this role is to facilitate positive change and support the businesses with their approach to corporate responsibility;
sharing good practice, providing tools and resources and being a central point for corporate responsibility (CR) issues which
includes climate-related risks and opportunities. ABF also has a Group Health, Safety and Environment (HSE) Manager. Part
of this role is to support the businesses with their environmental performance and, as such, works with the CSO and CR
Leaders in the businesses. The Group HSE Manager reports into the Group HR Director who also reports to the Chief
CDP Page 6 of 86
Executive.
The CSO is also a member of the Committee on Climate Change's Adaptation Committee, an independent, statutory body
established under the Climate Change Act 2008. The Adaptation Committee's purpose is to provide advice to the UK
Government and Devolved Administrations on preparing for and adapting to climate change. The knowledge and skills
required to fulfill the CSO role contribute to the expertise required for the Adaptation Committee.
2) Description of responsibilities
The CSO is responsible for both assessing climate-related risks and opportunities and works with the CR Leaders and finance
teams in the businesses to help manage these risks. The CSO chairs the CR Leaders Group which addresses a range of
issues including climate change. Our decentralised business model empowers the management of our businesses to
identify, evaluate and manage the risks they face, on a timely basis, to ensure compliance with relevant legislation, our
business principles and group policies.
3) Description of specific climate-related issues monitoring
Climate-related issues are integrated into the overall group risk management and performance processes; risks are initially
identified at site level, channelled to the business level, followed by the business segment and then collated at group level.
An aggregated summary of risks, including environment and climate, is reviewed by the Director of Financial Control
(equivalent title to Chief Risk Officer), Group Finance Director, Chief Executive and ABF's board at least annually. In parallel,
the CR and HSE Leaders Groups meet throughout the year to identify and discuss groupwide and business- or geographic-
specific issues such as climate change, water stewardship and deforestation. In addition, the CSO is responsible for reporting
ABF's climate related disclosures, working with the CR Leaders, risk, finance and HSE to obtain performance data and
activities for reporting purposes to investors, benchmarks and other external stakeholders. As well as providing annual
performance data on emissions, the businesses are also required to supply the CSO with annual examples of carbon-related
activities and updates to strategies or policies directed at climate change.
CR and HSE Managers from our five business segments are members of the groups as well as representatives from
Finance, Procurement, Risk Management and Communications. These groups are chaired by the CSO, reporting to the
Company Secretary and Group HSE Manager reporting to the Group HR Director.
For further detail and a graphic to show this, see Our CR Reporting Guidance 2018 at
(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third
party to avoid GHG emissions?
Yes
C4.5a
(C4.5a) Provide details of your products and/or services that you classify as low-carbon products or that enable a
third party to avoid GHG emissions.
Level of aggregation
Group of products
Description of product/Group of products
AB Enzymes produces enzymes which improve industrial performance while preserving natural resources. For example, our
enzymes help customers to lower the energy consumption required for the production of paper. We have also created
enzymes that improve the effectiveness of laundry detergent, allowing consumers to save energy by washing their clothes at
a lower temperature while achieving even better cleaning performance compared to detergents without enzymes.
Are these low-carbon product(s) or do they enable avoided emissions?
Avoided emissions
Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions
Other, please specify (Internal calculations)
% revenue from low carbon product(s) in the reporting year Comment
Visit www.abfingredients.com and www.abenzymes.com
Level of aggregation
Product
Description of product/Group of products
The manufacture of bioethanol from our Sugar businesses which is sold as a renewable transport fuel. In the reporting year,
Vivergo Fuels produced bioethanol at its facility in Hull with the capacity to produce up to 420 million litres of bioethanol each
year.
Are these low-carbon product(s) or do they enable avoided emissions?
Avoided emissions
Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions
Other, please specify (Internal calculations)
% revenue from low carbon product(s) in the reporting year Comment
Bioethanol is used as a renewable fuel for transport.
Level of aggregation
Group of products
Description of product/Group of products
All of AB Sugar's businesses adopt a circular economy approach - to make the most out of every stick of cane and root of
beet so that wherever possible, there is minimal waste by producing co-products, generating renewable energy and reusing
or returning water to source. For example, AB Sugar China sell co-products like molasses and animal feed as well as ash
from their boilers which they use to supply factories to make bricks.
Are these low-carbon product(s) or do they enable avoided emissions?
CDP Page 32 of 86
Low-carbon product
Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions
Other, please specify (Internal calculations)
% revenue from low carbon product(s) in the reporting year Comment
Level of aggregation
Group of products
Description of product/Group of products
All of AB Sugar's businesses adopt a circular economy approach - to make the most out of every stick of cane and root of
beet so that wherever possible, there is minimal waste by producing co-products, generating renewable energy and reusing
or returning water to source. For example, Azucarera recycles 99% of waste from the sugar process and produces around
400,000 tonnes per year of co-products like animal feed and agricultural fertiliser. For the former, Azucarera can provide
bespoke feed products tailored to the need of its customers. To decrease emissions in producing animal feed, they introduced
a sun-drying pulp system instead of using mechanical dryers which reduces CO2 emissions by 13,000 tonnes per year at its
factories.
Are these low-carbon product(s) or do they enable avoided emissions?
Low-carbon product
Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions
Other, please specify (Internal calculations)
% revenue from low carbon product(s) in the reporting year Comment
Level of aggregation
Group of products
Description of product/Group of products
All of AB Sugar's businesses adopt a circular economy approach - to make the most out of every stick of cane and root of
beet so that wherever possible, there is minimal waste by producing co-products, generating renewable energy and reusing
or returning water to source. For example, British Sugar makes over ten different co-products from the sugar making
process, including animal feed, LimeX and topsoil – the non-core sales for which deliver approximately 21% of British
Sugar’s revenue. Across their four factories, they produce less than 200 grams of waste per tonne of sugar produced. In
Bury St Edmunds, they use an Anaerobic Digester to turn over 100,00 tonnes of beet pressed pulp per year into enough
energy to power over 18,000 homes. In our Wissington operations, we run an 18-hectare glasshouse which uses 46,000
MWh of excess heat from the factory and 250,000 tonnes of CO2 for horticulture.
Are these low-carbon product(s) or do they enable avoided emissions?
Avoided emissions
Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions
Other, please specify (Internal calculations)
% revenue from low carbon product(s) in the reporting year Comment
C5. Emissions methodology
C5.1
(C5.1) Provide your base year and base year emissions (Scopes 1 and 2). Scope 1
Base year start
September 1 2010
CDP Page 33 of 86
Base year end
August 31 2011
Base year emissions (metric tons CO2e)
2694910
Comment
Scope 2 (location-based) Base year start
September 1 2010
Base year end
August 31 2011
Base year emissions (metric tons CO2e)
911386
Comment
Scope 2 (market-based) Base year start
September 1 2017
Base year end
August 31 2018
Base year emissions (metric tons CO2e)
942354
Comment
2018 was our first year of calculating our scope 2 market-based emissions. We have accurate figures for around 64% from
the businesses and will work to expand this to cover 100% of our portfolio in the coming years.
C5.2
(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate
Scope 1 and Scope 2 emissions.
Defra Voluntary 2017 Reporting Guidelines
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)
C6. Emissions data
C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e? Reporting year
Gross global Scope 1 emissions (metric tons CO2e)
3227870
Start date
August 1 2017
End date
July 31 2018
Comment
CDP Page 34 of 86
Associated British Foods' total Scope 1 emissions are 3,158,771 metric tons CO2e for the combustion of fuel and operation
of facilities and 69,099 metric tons CO2e for the generation and use of renewables.
C6.2
(C6.2) Describe your organization’s approach to reporting Scope 2 emissions. Row 1
Scope 2, location-based
We are reporting a Scope 2, location-based figure
Scope 2, market-based
We are reporting a Scope 2, market-based figure
Comment
This is our first year reporting our market-based scope 2 emissions and we are working with our businesses to develop a
structured approach which can be evidenced. The first step has been to ascertain what information we can gather from the
various energy suppliers across our global operations. This has had different levels of success depending on geography and
the ability of suppliers to provide the requested information. We have been able to map 64% of our scope 2 emissions in our
first year and are hopeful that as we continue to work with our energy suppliers we will be able to increase this figure and
therefore the accuracy of our scope 2 market-based disclosure. This year where we have been unable to get an exact figure
from suppliers, we have used the DEFRA/IEA conversion factors which are in general higher and therefore led to a higher
overall emissions number.
C6.3
(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e? Reporting year
Scope 2, location-based
925045
Scope 2, market-based (if applicable)
942354
Start date
August 1 2017
End date
July 31 2018
Comment
We have calculated that our market-based emissions are just over 1.5% higher than our location-based emissions. This is
due to the use of more accurate emission factors for a number of countries whereby emission factors were provided by our
businesses which were nationally or locally specific to their use. Our location-based emissions were calculated using the
carbon conversion factors published by BEIS in August 2018, other internationally recognised sources and bespoke factors
based on laboratory calculations at selected locations. Therefore for this first year of reporting market-based emissions, we
are reporting an increased figure compared with our location-based emissions. This increase has not been balanced-out by
the amount of use of renewable energy reported by other businesses.
C6.4
(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2
emissions that are within your selected reporting boundary which are not included in your disclosure?
Yes
C6.4a
(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting
boundary which are not included in your disclosure.
CDP Page 35 of 86
Source
Landlord controlled office emissions
Relevance of Scope 1 emissions from this source
Emissions are not relevant
Relevance of location-based Scope 2 emissions from this source
Emissions are not relevant
Relevance of market-based Scope 2 emissions from this source (if applicable)
Emissions are not relevant
Explain why this source is excluded
We do not collect data from a limited number of small rented offices. Their contributions to the group's Scope 1 and 2
emissions are immaterial.
C6.5
(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions.
Purchased goods and services
Evaluation status
Relevant, not yet calculated
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
We recognise that this source of emissions is material for Associated British Foods. However, we are a diverse business with
many operating companies and we do not centrally control their operations. Therefore, we do not have the granular data to
calculate the emissions in this category.
Capital goods
Evaluation status
Relevant, not yet calculated
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
The processing of sugar beet and sugar cane (which accounts for the majority of our total energy usage) requires very large
plant and equipment and hence is capital intensive. We recognise that this source of emissions is material for our business.
CDP Page 36 of 86
However, we are a diverse business with many operating companies and we do not centrally control their operations.
Therefore, we do not have the granular data to calculate the emissions in this category.
Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated
Metric tonnes CO2e
514314
Emissions calculation methodology
Emissions in this category were calculated from three distinct activities: (1) Upstream emissions (well to tank - WTT) of
purchased fuels; (2) Upstream emissions from purchased electricity and district heating; (3) Transmission & Distribution
(T&D) losses and associated WTT from purchased electricity. The source for emission factors for T&D losses is DEFRA
2017 (as no longer published for overseas electricity) while the emission factors for the other two sources are from DEFRA
2018, using country-specific or regional average emission factors for electricity.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
100
Explanation
All emissions calculated were from the data supplied by ABF businesses for Scope 1 and Scope 2 in their annual data
submission, assured by EY.
Upstream transportation and distribution
Evaluation status
Relevant, calculated
Metric tonnes CO2e
813293
Emissions calculation methodology
We use DEFRA Voluntary 2017 Reporting Guidelines to calculate our upstream transportation and distribution emissions.
We used standard factors from DEFRA's carbon emission factors list 2018 for all fuel.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
100
Explanation
All emissions calculated were from the data supplied by ABF businesses for Scope 1 and Scope 2 in their annual data
submission, assured by EY. Our transport emissions include those resulting from any transport movement that is dedicated to
move something for us (raw materials, ingredients, packaging, processing aids, waste, part processed materials or finished
product) and; the means of transport is either owned or leased by us; or we are invoiced directly by the sub-contractor for
that transport movement. Our reported emissions includes the movement of goods via ships and aeroplanes.
Waste generated in operations
Evaluation status
Relevant, calculated
Metric tonnes CO2e
27438
Emissions calculation methodology
Waste generated in our operations includes hazardous and non-hazardous wastes and waste material which is reused,
recycled or recovered. The tonnage of waste generated is assured by EY. DEFRA's 2018 waste disposal emission factors
have been applied.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
100
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Explanation
All wastes generated by our businesses are monitored and reported on an annual basis to ABF. This data is verified by
ABF’s HSE Team and is also independently assured by Ernst & Young (limited assurance). The coverage of primary data is
100% and the quality of this data is very high. The emission factors are secondary data, supplied by DEFRA, and are not
geographically representative. Therefore, the quality of the calculated and reported information here is deemed to be
intermediate.
Business travel
Evaluation status
Relevant, not yet calculated
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
As a global business with activities in over 50 countries, our employees undertake international and national travelling by
various means. We are a diverse business with many operating companies and currently we do not centrally hold the
granular data to calculate the emissions in this category.
Employee commuting
Evaluation status
Relevant, calculated
Metric tonnes CO2e
40912
Emissions calculation methodology
Emissions from employee commuting are based on an estimation of the average distance travelled per number of
employees per country multiplied by DEFRA 2018 emissions factors for private and public transport.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0
Explanation
The relevance or materiality of emissions from employee commuting is insignificant for our group and when estimated,
account for less than 1% of ABF's total emissions. However, we recognise that with over 100,000 employees worldwide
there is still a considerable amount of employee commuting. Nonetheless, given the varied locations of our sites, the nature
of employee commuting will also be varied including most forms of private and public transport. As we have the raw data to
calculate an estimate (using employee figures, national average commuting time and country emission factors), we have
reported this data. We have factored in assumptions on the type of transport used. As such, the coverage of this data is high
using employee figures but the calculations used are based on assumptions and therefore the overall quality of this data is
considered to be below average.
Upstream leased assets
Evaluation status
Relevant, calculated
Metric tonnes CO2e
1538
Emissions calculation methodology
CDP Page 38 of 86
Emissions from upstream leased assets are estimated based on CIBSE benchmark gas and electricity consumption per FTE
at these sites and multiplied by DEFRA 2018 emissions factors for gas and IEA 2018 emissions factors for electricity. The
calculation used is the asset-specific method using the FTE to determine floor space and therefore estimated fuel and
electricity used in the year.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0
Explanation
The relevance or materiality of emissions from upstream leased assets is insignificant and account for less than 1% of ABF's
total emissions. However, we have the raw data to estimate a figure and therefore report the data. The calculation used is
the asset specific method using the FTE to determine floor space and therefore estimated fuel and electricity used in the
year. The primary data uses information captured according to the number of employees and is therefore of good quality.
Coverage of leased assets may not be highly accurate, based on available information, and the resultant calculations are
based on estimates, therefore the final reported data is of below average quality.
Downstream transportation and distribution
Evaluation status
Relevant, not yet calculated
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
We have not yet calculated this due to the complexity and diversity of our business entities.
However, a number of individual businesses are starting to assess their Scope 3 emissions from
across their value chain with emissions from distribution being of particular interest, and high
priority, for certain businesses.
Processing of sold products
Evaluation status
Relevant, not yet calculated
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
A proportion of our products such as sugar, yeast, edible oils and bakery ingredients are sold to other companies to be
further processed and incorporated into their (mainly food) products. As we do not directly control our operating companies,
we are unable to obtain the granular data on the destination of their products.
Use of sold products
Evaluation status
CDP Page 39 of 86
Relevant, not yet calculated
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
A proportion of our products such as bread, tea, ethnic foods, animal feed, clothes, soft furnishings and bioethanol are
consumed directly without any further processing. As we do not directly control our operating companies, we are currently
unable to obtain the granular data needed to calculate this category.
End of life treatment of sold products
Evaluation status
Relevant, not yet calculated
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
ABF's final food and other products are consumed by millions of people. As we do not directly control our businesses, we are
currently unable to obtain the granular data needed to calculate this category. However, a small number of businesses are
starting to assess the impact of their products and consider how to engage consumers in improving disposal of such products.
Downstream leased assets
Evaluation status
Relevant, not yet calculated
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
Any emissions from downstream leased assets are certain to be extremely small and not material when compared to our
main emission sources, particularly as we do not lease out a significant amount of our assets.
Franchises
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
CDP Page 40 of 86
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
We do not have franchises.
Investments Evaluation status
Relevant, not yet calculated
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
In previous years, we reported emissions from our joint ventures under Scope 3, Category 15 Investments. From this year,
we have expanded our boundary for our total GHG inventory to include joint ventures over 40% ownership in our Scope 1
and Scope 2 emissions.
Other (upstream)
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
Explanation
We are not aware of other upstream Scope 3 emissions.
Other (downstream)
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology
<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners
<Not Applicable>
CDP Page 41 of 86
Explanation
We are not aware of any other downstream Scope 3 emissions.
C6.7
(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?
Yes
C6.7a
(C6.7a) Provide the emissions from biologically sequestered carbon relevant to your organization in metric tons
CO2. Row 1
Emissions from biologically sequestered carbon (metric tons CO2)
3711277
Comment
C-AC6.8/C-FB6.8/C-PF6.8
(C-AC6.8/C-FB6.8/C-PF6.8) Is biogenic carbon pertaining to your direct operations relevant to your current CDP
climate change disclosure?
Yes
C-AC6.8a/C-FB6.8a/C-PF6.8a
(C-AC6.8a/C-FB6.8a/C-PF6.8a) Account for biogenic carbon data pertaining to your direct operations and identify
any exclusions.
CO2 emissions from land use management
Emissions (metric tons CO2)
59372
Methodology
Default emissions factors
Please explain
Clearing the land of sugar cane on our own land in preparation for new crop rotation.
CO2 removals from land use management
Emissions (metric tons CO2)
0
Methodology
Other, please specify (Managed, not measured)
Please explain
We apply best management practices to manage the soil and CO2 emissions on our own land, as required under relevant
certification schemes. This does not involve the measurement and reporting of CO2 removals.
Sequestration during land use change
Emissions (metric tons CO2)
CDP Page 42 of 86
0
Methodology
Other, please specify (Managed, not measured)
Please explain
We apply best management practices to manage the soil, CO2 emissions and sequestration on our own land, as required
under relevant certification schemes.
CO2 emissions from biofuel combustion (land machinery)
Emissions (metric tons CO2)
0
Methodology
Other, please specify (Managed, not reported centrally)
Please explain
We collect data for fuels used in our own transport which includes land machinery and are reported in our aggregated Scope
1 emissions. We do have data at the granular level for different fuel sources used in land machinery across our operations.
CO2 emissions from biofuel combustion (processing/manufacturing machinery)
Emissions (metric tons CO2)
0
Methodology
Default emissions factors
Please explain
These emissions relate to biogenic fuels such as biomass, wood/wood waste, fuel crops and biogas used as fuels within our
manufacturing operations. CO2 emissions from biofuel combustion in our processing and manufacturing are included in
Scope 1 emissions.
CO2 emissions from biofuel combustion (other)
Emissions (metric tons CO2)
0
Methodology
Other, please specify (Not measured )
Please explain
The emissions from biofuel combustion are captured and reported in our group figures.
C-AC6.9/C-FB6.9/C-PF6.9
(C-AC6.9/C-FB6.9/C-PF6.9) Do you collect or calculate greenhouse gas emissions for each commodity reported as
significant to your business in C-AC0.7/FB0.7/PF0.7?
Agricultural commodities
Sugar
Do you collect or calculate GHG emissions for this commodity?
Yes
Please explain
In April 2018, AB Sugar publicly shared its commitment to growing a sustainable future through its Global Minds, Local
CDP Page 43 of 86
Champions sustainability framework. One element of this commitment is to reduce end-to-end greenhouse gas emissions by
30% by 2030. AB Sugar works with its 6 sugar businesses (British Sugar, AB Sugar China, Azucarera, Germains, Illovo and
Vivergo Fuels) to collect CO2e data from suppliers, collate own operations data and build a clear understanding of end-to-end
emissions. Data reported here are from own-produced sugar cane and sugar beet which is processed by AB Sugar. Our
Sugar businesses report their GHG emissions data once a year to ABF using the group’s CloudApps system. From each
site, data is collected from several inputs across agricultural activities (own land), transport, manufacturing process and
energy use. The site SHERQ (safety, health, environment, risk and quality) Manager is responsible for analysing, challenging
and signing off the data. The SHERQ Manager also engages with the business level Finance team who conduct a review
across business aggregated data before it is submitted to AB Sugar’s Finance team. Additional checks are conducted for the
data across AB Sugar before it is inputted to ABF’s environment data system.
Agricultural commodities
Cotton
Do you collect or calculate GHG emissions for this commodity?
No, not currently but intend to collect or calculate this data within the next two years
Please explain
GHG emissions for sourced cotton are not currently calculated but work is expected to be conducted in the coming years to
start calculating this data.
Agricultural commodities
Soy
Do you collect or calculate GHG emissions for this commodity?
No
Please explain
Priorities for soy do not currently include calculating the GHG emissions from this commodity.
Agricultural commodities
Wheat
Do you collect or calculate GHG emissions for this commodity?
No
Please explain
Priorities for wheat do not currently include calculating the GHG emissions from this commodity.
Agricultural commodities
Other (Tea)
Do you collect or calculate GHG emissions for this commodity?
No
Please explain
We are able to calculate the GHG emissions for tea based on total emissions generated by our whole Twinings business. As
such, these are not specific emissions related solely to tea activities and are therefore not reported.
C-AC6.9a/C-FB6.9a/C-PF6.9a
(C-AC6.9a/C-FB6.9a/C-PF6.9a) Report your greenhouse gas emissions figure(s) for your disclosing commodity(ies), explain your methodology, and include any exclusions.
Cotton
Reporting emissions by
Please select
CDP Page 44 of 86
Emissions (metric tons CO2e) Denominator: unit of production
<Not Applicable>
Change from last reporting year
Please select
Please explain
GHG emissions for sourced cotton are not currently calculated but work is expected to be conducted in the coming years to
start calculating this data.
Soy
Reporting emissions by
Please select
Emissions (metric tons CO2e) Denominator: unit of production
<Not Applicable>
Change from last reporting year
Please select
Please explain
Priorities for soy do not currently include calculating the GHG emissions from this commodity.
Sugar
Reporting emissions by
Unit of production
Emissions (metric tons CO2e)
128156
Denominator: unit of production
Other, please specify (Tonnes of sugar beet and sugar cane grown by Associated British Foods)
Change from last reporting year
About the same
Please explain
While there were variances between beet and cane production on our land between the two years, the overall production of
sugar remained relatively static, with a 6% increase. Our Sugar businesses report their GHG emissions data once a year to
ABF using the group’s CloudApps system. From each site, data is collected from several inputs across agricultural activities
(own land), transport, manufacturing process, and energy use. The site SHERQ (safety, health, environment, risk and
quality) Manager is responsible for analysing, challenging and signing off the data. The SHERQ Manager also engages with
the business level Finance team who conduct a review across business aggregated data before it is submitted to AB Sugar’s
Finance team. Additional checks are conducted for the data across AB Sugar before it is inputted to ABF’s environment data
system.
Wheat
Reporting emissions by
Please select
Emissions (metric tons CO2e) Denominator: unit of production
<Not Applicable>
Change from last reporting year
Please select
CDP Page 45 of 86
Please explain
Priorities for wheat do not currently include calculating the GHG emissions from this commodity.
Other
Reporting emissions by
Total
Emissions (metric tons CO2e) Denominator: unit of production
<Not Applicable>
Change from last reporting year
This is our first year of measurement
Please explain
We are able to calculate the GHG emissions for tea based on total emissions generated by our whole Twinings business. As
such, these are not specific emissions related solely to tea activities and are therefore not reported.
C6.10
(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e
per unit currency total revenue and provide any additional intensity metrics that are appropriate to your business
operations.
Intensity figure
0.0002666
Metric numerator (Gross global combined Scope 1 and 2 emissions)
4152915
Metric denominator
unit total revenue
Metric denominator: Unit total
15574000000
Scope 2 figure used
Location-based
% change from previous year
4
Direction of change
Decreased
Reason for change
The reasons for the changes include: - this year we have included our joint ventures into our Scope 1 and Scope 2 emissions
(to align with our own public reporting). - this year we have allocated the methane and nitrous oxide from our renewable fuels
into Scope 1. - revenues are higher by 1% this year with Scope 1 and 2 emissions decreasing by 2% over the two years.
C7. Emissions breakdowns
C7.1
(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?
Yes
C7.1a
CDP Page 46 of 86
(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas type and provide the source of
each used greenhouse warming potential (GWP).
Greenhouse gas
Scope 1 emissions (metric tons of CO2e) GWP Reference
CO2 3147500 IPCC Fourth Assessment Report (AR4 - 100 year)